JNNE NEWS OUT ON BUSINESS WIRE.....................
Jones Naughton Receives First Royalty Payment from Costco Agreement
Affiliated Marketing Services Acquisition Set to Close by July 15th.
LOS ANGELES--(BUSINESS WIRE) -- June 25, 1998 -- Jones Naughton Entertainment, Inc. (OTC BB: JNNE) announced today they are in receipt of the first royalty payment resulting from Jones Naughton's October 1997 joint venture with Royal West Sales. This first payment represents royalty income from loans closed through Costco Companies, Inc.'s loan referral program as of December 31, 1997.
Jones Naughton receives royalty payments as the result of the joint venture's brokered agreement between Costco (Nasdaq:COST - news) and a leading computer real estate loan referral company. Costco operates a chain of over 270 wholesale membership warehouses world-wide, including over 200 stores in the United States.
Costco has been conducting a test of the consumer-direct loan referral program through a limited number of their stores in selected locations. Based upon the successful results achieved at Costco's test sites, a broad roll-out of the loan referral program is currently underway. The extent and timing of the roll-out will be at Costco's discretion.
Royalty payments will be received from the loan referrals generated through Costco stores for the life of the loan referral program. Royalty payments will be received on a quarterly basis, and are expected to increase proportionately as Costco's expansion of the loan referral program is made available to all of their members through all of their stores in the U.S.
Jones Naughton Entertainment, Inc. additionally confirmed that the previously announced acquisition (see May 26th press release at: jnne.com of Affiliated Marketing Services, Inc. (AMS) should close on or before July 15th. AMS is a Del Mar, California based multi-media publisher, advertising agency, media buyer and direct mail advertising firm with annual revenues in excess of $1 Million.
AMS is the publisher of such well-known publications as THE ENTERTAINER AND LIFESTYLES MAGAZINE, THE SMART SHOPPER SAVINGS GUIDE and the annual elegant souvenir program for the PGA MERCEDES CHAMPIONSHIP in La Costa, California.
Jones Naughton Entertainment (OTC Bulletin Board: JNNE), through its COMMUNITY MARQUEE Division, operates audio visual information systems custom-designed to provide free, instant and site-specific information for advertising goods and services in a variety of community forums. Current subscribers include the U.S. Army, Enterprise Car Rental, Great Western Savings, Manpower Inc. [NYSE:MAN - news], Round Table Pizza and many others. Planned growth for COMMUNITY MARQUEE is through acquisition of small specialized marketing companies in targeted markets nationwide. Additionally, Jones Naughton receives royalty income from Costco's loan referral program.
This press release contains forward-looking statements which are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Expression of future goals and similar expressions reflecting something other than historical fact involve risks and uncertainties. The actual results the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties.
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24-HOUR AUTOMATED SHAREHOLDER INFORMATION: Phone (888) 209-7223
Patrick M. Rost, Director of Business Development and Corporate Communications
Jones Naughton Entertainment, Inc.
Phone: (888) 847-5663
Joseph Naughton, Chairman, Jones Naughton Entertainment, (714) 736-0988
www.jnne.com Investor Relations Website
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